In a nutshell:

One of the few cards on the market that rewards cardholders for paying bills, the State Farm Rewards Visa pairs a unique rewards program with a modest interest-free promotion, but its standard card APR is a little high for carrying a balance.

In a nutshell:

For a no-annual-fee card, the State Farm Rewards Visa offers a pretty reasonable interest rate, but it also comes with few features and a rewards program that only makes sense for those who spend a large amount of cash on State Farm insurance premiums.

In a nutshell:

The State Farm Rewards Visa encourages responsibility by making it easy for cardholders to put their rewards toward a mortgage or insurance payment, but its lackluster rewards scheme falls short of its competitors.

In a nutshell:

With triple the rewards for insurance payments and a modest bonus on rewards redeemed through a State Farm financial product, the State Farm Rewards Visa offers a unique incentive for State Farm customers to pay for their premiums with credit.

Many people use rewards cards to fund vacations, buy gift cards or pick up merchandise they might not have otherwise purchased. State Farm is betting that a certain subset of consumers would rather use their rewards for more practical purposes, such as paying off their car insurance. The State Farm Rewards Visa could help current State Farm customers whittle down their payments, but cardholders hoping for a more substantial boost may be disappointed by the card’s comparatively low rewards rate.

A rewards-funded insurance discount

Unlike many rewards programs that encourage cardholders to redeem their points for fun or travel, State Farm encourages cardholders to use their rewards to pay bills. State Farm Rewards cardholders can put points toward any State Farm product, including auto, home, health and life insurance, mortgages and credit cards. State Farm has recently revamped its rewards programs to give cardholders more rewards options – they can now redeem points for gift cards, merchandise and travel rewards.

Extra points for planners and savers

Cardholders also have the option of putting their points toward eligible State Farm products, making it an attractive option for current State Farm customers. Rewards that are redeemed toward a qualifying State Farm checking account may receive an extra 25 to 50 percent redemption bonus. While this is a nice incentive, the threshold is high — you have to deposit at least 25,000 points to qualify.

Here is a breakdown of the bonus:

0 to 24,999 points — No bonus

25,000 – 49,999 points — 25% bonus

50,000 – 99,999 points — 35% bonus

More than 99,999 points — 50% bonus

Uninspired rewards

Despite its unique redemption options, the rewards scheme on the State Farm Rewards Visa is fairly ordinary. Unlike many rewards cards on the market, State Farm doesn’t offer bonus points on certain types of spending (apart from the 3 percent bonus on insurance payments), putting it at a significant disadvantage compared to its competitors. Instead, cardholders are offered just 1 percent on purchases, which is fairly average for a rewards card. At a penny per transaction, cardholders can earn enough to make a dent in their insurance payments, but they can probably earn more cash – which they can use toward their bills – from another card.

State Farm does offer a modest bonus of 3 points for every dollar that cardholders spend on State Farm insurance premiums. Unfortunately, there is a strict cap on this bonus – it only applies to the first $4,000 of premiums on a yearly basis.

Bare-bones perks

The State Farm Rewards Visa offers fewer perks than the average rewards card. Like many similar credit cards, travelers are given auto rental insurance, travel accident insurance, travel and emergency assistance, and emergency card services in case they lose their card. But the card doesn’t offer any other travel perks, apart from a discount on hotels. State Farm does advertise unique financial management tools that may help cardholders better manage their money. But it’s not clear what those tools entail, apart from State Farm’s extensive online personal finance content. Unlike many credit card issuers, State Farm doesn’t offer free credit scores.

Why get the State Farm Rewards Visa card?

You’re a current State Farm customer and want to use your rewards to help pay for insurance, mortgage or other State Farm products.

You spend a lot on insurance and would benefit from the 3 percent bonus on insurance payments.

You have a life insurance, mutual fund or checking account with State Farm and want to take advantage of State Farm’s bonus offer.

How to use the State Farm Rewards Visa card:

Use your State Farm credit card for all your insurance payments in order to cash in on the rewards bonus. Be sure, however, that the payments are classified on your credit card statement as insurance payments.

To get the most value from this card, put your rewards toward a State Farm life insurance policy or a mutual fund. Or, redeem rewards through your State Farm checking account and pay your insurance or mortgage bills from there.

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